How does the length of a lease impact on ability to sell a property?
The leasehold has 80 years remaining on it. what impact could this have on me as a possible buyer?
Asked on Feb 23 2011,
House Prices in Southampton |
Usually I am led to believe, lease can be renewed at 80 years at a cost to you for further years lease.
Answered on Feb 23 2011,
Traditionally a bank/ building society wouldn't lend if there was say less than 40 years unexpired to run on the lease. There's no set rule - they may all have their individual policies on this. With residential property there may be a statutory right to enfranchise ie to extend the lease and/ or purchase the freehold or even a share of the commonhold. This can be complicated depending on property type and the lease. Consulting a Chartered Valuation Surveyor experienced in this field is advisable. If you consult www.rics.org you should see a findasurveyor page.
The impact a lease with 80 years remaining will depend on what the lease says, there may be provisions for rent, rent review, service charges, insurance, maintenance responsibility, restrictions on use etc.
Answered on Feb 24 2011,
There is a direct impact on the price. It does hinge on how long exactly is left and whether it can be extended. This can either be done at the cost of seller and this is determined by the Lease Holder. This would also include any reasonable charges dictated by their solicitor too. The cost to extend the lease needs to be determined. But primarily you need to know how long is left on the lease.
Answered on Apr 2 2011,
It depends on the lenders criteria now. It also depends on how long you intend to live at the property. Leases can be extended and the costs of this should be investigated prior to purchase. If you need any more information please call me. Ian
Answered on May 2 2011,
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